Developing a framework for facilities management supply chain performance evaluation in hotels

Abstract

Facilities Management Supply Chain (FMSC) encompasses multi-disciplinary activities, and thus have extensive requirement for multiple party interactions. Moreover, FMSC is characterised with complexities due to the network structure, availability of conflicting relationships and involvement of multiple parties resulting in deprived performance levels. Performance measurement and Performance Measurement System (PMS) have been endorsed by many researches worldwide as a mechanism to upsurge supply chain performance levels by evaluating performance and determining future courses of actions. However, performance measurement and metrics pertaining to FMSC have not received adequate attention from researchers or practitioners of Facilities Management (FM). This research therefore, sets out to develop a PMS to evaluate FMSC performance in hotels. The study primarily carried out an extensive literature review. Subsequently, under qualitative approach and case study strategy, data was collected through document review and 21 semi-structured interviews in three (03) case studies of five-star hotels in Sri Lanka. The collected data were analysed using manual code base content analysis and QSR N-Vivo 10 Software. The study initially conducted an in-depth investigation to determine the nature of FMSC and revealed that FMSC comprises upstream, mid-stream and downstream processes and activities carried out by internal and external parties together with bidirectional information, product and finance flow and unidirectional service flow. The seven (07) key FMSC processes identified by the study were delivery of product by suppliers, delivery of services by service providers, sourcing, make/ fulfil, delivery of FM services and products, receipt of FM services and receipt of products by customers. Empirical findings revealed that FMSC undergoes several challenges faced mainly from supplier, internal and customer perspectives. Lack of reliable suppliers, lack of information and inconsistent quality from supplier’s end formed the top most challenges in FMSC. These challenges possess threats on FMSC performance in short term and long term. Hence, the necessity of monitoring and evaluating FMSC performance through a systematic PMS is indispensable. Therefore, based on the derived FMSC process and key activities, 38 key performance indicators were developed for all seven (07) key sub-processes. By integrating the key performance indicators, the overall performance measurement system for FMSC was developed to improve cooperation among FMSC partners, to raise FMSC integration and finally to pursuit FMSC excellence through FMSC performance monitoring, evaluation and feedback. The developed Framework was validated by three (03) subject matter experts in hotel industry. The FMSC performance measurement system developed by this study would assist FM practitioners to contribute towards overall hotel performance by ensuring both internal and external customer satisfaction